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close this bookEmerging World Cities in Pacific Asia (UNU, 1996, 528 pages)
close this folderPart 2. Changing Asia-Pacific world cities
close this folderJabotabek and globalization
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View the documentIntroduction
View the documentThe context: Globalization of the Indonesian economy
View the documentJabotabek, the Jakarta metropolitan area
View the documentThe Jabotabek region's national and international linkages
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Jabotabek, the Jakarta metropolitan area

The Special Capital Region of Jakarta (in Indonesian known as Daerah Khusus Ibukota (DKI) Jakarta) is Indonesia's largest and most important city. It has a status equal to a province. The city has been established for over 460 years, and in the past 40 years has grown at an explosive rate. After more than four centuries of limited population and spatial growth, Jakarta has expanded rapidly over the past four decades. The growth of Jakarta in this period has resulted in a significant shortfall of infrastructure in terms of public services and has highlighted the urgent need to consider means of coordinating the management of the city's development and growth with the surrounding regions, namely, the kabupatens of Bogor, Tangerang, and Bekasi (fig. 11.1).

In 1948 the population of Jakarta was about 2 million, with a builtup area of 20,000 ha, including Kebayoran Baru, a new town in the south. In 1965 the population of Jakarta was about 4 million, with a built-up area of 35,000 ha. By 1980, Jakarta occupied 65,400 ha with a population of 6.5 million, and it was by this time that the influence of the city on the region (rather than simply on its fringes) was clearly demonstrated. The 1990 Population Census showed that Jakarta had 8.2 million inhabitants.

The initial response to the accelerated growth of Jakarta was to expand the boundaries of Jakarta in order to accommodate the growth. The expansion took over some of the areas of the Bogor, Tangerang, and Bekasi regencies. Subsequently, as growth extended beyond the revised boundaries, the government adopted a different approach in the mid-1970s, and the concept of Jabotabek was introduced.

This metropolitan region comprises DKI Jakarta and the kabupatens of Bogor, Tangerang, and Bekasi. A joint development cooperation board was established with the responsibility of coordinating development activities in this region.


Fig. 11.1 The administrative boundaries of Jabotabek

Population growth

Jakarta is the national capital and seat of the central government and the main commercial and administrative centre of the country. Between 1961 and 1980, the population of DKI Jakarta doubled and by 1990 as much as 15 per cent (8.2 million) of Indonesia's urban population and 5 per cent of the total population lived and worked in the city. However, urbanization has outgrown the administrative boundaries of DKI Jakarta and, with the spread of industrial and residential development, the surrounding fringe areas now contain a further 2.3 million people.

By the year 2005, if present trends continue, there will be around 26 million people living in Jabotabek, with over 18 million of them living in the built-up area of DKI Jakarta and the urban areas of the surrounding kabupatens of West Java Province (Botabek). With a 2005 population estimate for DKI Jakarta of 13 million, this means that over 5 million people would be living in the urban area immediately adjacent to DKI Jakarta.

During the period 1980-1990, the region's population grew annually by 3.7 per cent, which is much higher than the national and West Java population growth rates of 1.97 per cent and 2.57 per cent, respectively. This growth has been largely due to the large number of in-coming migrants. During the past two decades, a gradual change in the migration pattern to and within the Jabotabek region has been perceived. Since 1975, permanent population movement from West Java (including Botabek) and other parts of the country to Jakarta has tended to decline and there has been a reverse trend towards the areas surrounding Jakarta, particularly the Botabek region.

Besides receiving migrants from DKI Jakarta, the Botabek region has increasingly been chosen as the preferred destination for migration. This is probably owing to lower land prices and living costs, followed recently by the increasing availability of employment, while accessibility to DKI Jakarta is still easy. This is reflected in the fact that the population growth rate in DKI Jakarta declined from 4 per cent during the period 1971-1980 to 2.41 per cent during the period 1980-1990, in contrast to the Bogor, Tangerang, and Bekasi regencies (table 11.3). Although the rate of out-migration from Jakarta to Botabek is increasing, it-will continue to be countered by continuous in-migration from other parts of Java and elsewhere, at least for the near future.

The 1990 Population Census shows that the destination region/province for migration gradually shifted from Java to outside Java. Yet, DKI Jakarta and West Java provinces (associated with the Botabek region) still remained the main destinations. The census results appear to imply that the decline in DKI Jakarta's growth rate was closely related to the out-migration of Jakarta's residents to the Botabek region, as indicated by its high population growth rates during the past decade. This is also evident from the new development of large-scale residential areas and new towns (e.g. Serpong and Tiga Raksa) in this area.

Apart from the vast in- and out-migration phenomena, there is also an element of temporary migration, which is largely unrecorded. It is obvious that there is much daily commuting between the urban fringe areas and DKI Jakarta. In 1986 it was estimated that more than 300,000 people commuted every day from the Botabek region to Jakarta for work, mainly by buses and intercity trains.

Table 11.3 Urban end rural population of Jabotabek region, 1980 and 1990


Urban


Rural

Total

Region

1980

1990

Annual growth rate (%)

1980

1990

1980

1990

Annual growth rate (%)

DKI Jakarta

6,071,748

8,222,515

3.08

408,906

-

6,480,654

8,222,515

2.41

Bogor municipality

246,946

271,341

0.95

-

-

246,946

271,341

0.95

Bogor regency

638,029

1,923,446

11.67

1,855,814

1,812,734

2,493,843

3,736,180

4.13

Tangerang regencya

228,162

1,520,837

20.89

1,300,857

1,244,151

1,529,019

2,764,988

6.10

Bekasi regencya

188,668

1,152,883

19.84

954,795

951,509

1,143,463

2,104,392

6.29

Source: Bureau of Population Statistics (BPS), Population Censuses 1980 and 1990.
a. Including their administrative cities of Tangerang and Bekasi.

Table 11.4 Population growth and dendsity of DKI Jakarta, 1961-1990

Year

Population ('000)

Density (per km2)

Inter-census growth (annual rate, %)

1961 Census

2,973

5,152


1971 Census

4,579

7,936

4.41

1980 Census

6,503

9,335

3.97

1990 Census

8,222

12,642

2.37

Source: BPS, Population Censuses.

DKI Jakarta is the smallest Indonesian province, with an area of 650.4 km2. The population density of DKI Jakarta in 1990 (12,642 persons/km2), as shown in table 11.4, naturally exceeds that of all other provinces except the Special Region of Yogyakarta (12,887/km2).

During the early to mid-1980s, DKI Jakarta continued to grow at rates close to, if not higher than, those during the 1970s. Even with optimistic assumptions as to future trends in fertility, mortality, and migration, it now seems clear that Jakarta's total population will exceed the target before the end of 2005, and perhaps before the end of the twentieth century. The Review Report of the Jabotabek Metropolitan Development Plan (JMDP) suggests a 2005 figure of around 13.3-13.5 million, which might be more realistic.

The average population density in 1980 in DKI Jakarta was about 9,000 persons/km2 and in 1990 it became more than 12,000 persons/km2 (table 11.5). Based on the JMDP projection, this will more than double by 2005, to between 20,000 and 21,000 persons per km2. Although, obviously, some areas will have higher densities than others, it should be clear that this will imply a fairly rapid infilling of what are now considered as "urban fringe" areas. The current expansion of densely settled urbanized areas is already spilling over the administrative boundaries of DKI Jakarta into surrounding areas. This trend is virtually certain to continue (and likely accelerate).

It is believed that in the future Botabek's share of the provincial population will continue to increase at the rate observed between 1980 and 1990. This implies that the Botabek region will increase its share of the West Java population from 19.7 per cent in 1980 and 25.1 per cent in 1990 to 27.2 per cent by 2005. This will give a population of 12.2 million for Botabek region in 2005. It is nevertheless considered that this projection is too low for two reasons. First, it ignores the fact that Botabek's share of the West Java population has increased faster since 1980. Second, there is a strong likelihood, as evidenced by the continuing rapid development of areas on the fringes of DKI Jakarta, that Botabek will continue to attract "overspill" population from DKI Jakarta. The high projection, which is considered more realistic, produced a figure of 13.3 million people in Botabek in 2005.

Table 11.5 Population density in Jabotabek region, 1980 and 1990



Density

Region

Area (km2)

1980

1990

DKI Jakarta

650.40

9,335

12,642

Bogor municipality

21.56

11,454

12,585

Bogor regency

2,864.32

223

672

Tangerang regencya

1,282.25

178

1,186

Bekasi regencya

1,599.96

118

721

Botabek

5,768.09

226

844

Jabotabek

6,418.49

1,149

2,040

Source: Calculation based on BPS, Population Censuses.
a. Including their administrative cities of Tangerang and Bekasi.

The regional economy of Jakarta metropolitan area

DKI Jakarta, as the core of Jabotabek metropolitan area, has different economic features from the other 26 provinces in the country. This can be seen from its economic structure, and in some cases also its magnitude, which has been led by secondary and tertiary activities, at least since 1975 (table 11.6).

Structural change in the Jakarta economy has been less rapid than might have been expected in such a rapidly expanding region. During the period 1975-1989, the shares of manufacturing, financial services, and transport and communications rose substantially, while those of trade and services fell. Lately the construction sector has also exhibited a tendency to fall. This trend is puzzling given the extraordinary boom in modern construction and the strong growth of investment in the public sector for much of this period.

The share of Jakarta in the national economy (including oil and gas) between 1985 and 1989 shows a small increase from 11.4 per cent to 11.6 per cent (table 11.6). A different picture would emerge if oil and gas value-added were included; there would be a slight decrease. This contradictory situation happened because of the sharp increase in non-oil and gas commodities produced, particularly outside Jakarta, during the period following the non-oil and gas export campaign. Of the eight main economic sectors available in Jakarta, two had very significant shares, namely utilities and finance. Although both were showing a slight decline, this still demonstrated the dominance of Jakarta.

Table 11.6 Distribution and share of GDP by economic sector in DKI Jakarta, 1975-1989 (%)


GDP distribution in DKI Jakarta

Share of DKI Jakarta's GDP in national economy

Sector

1975

1980

1985

1989

1985

1989

Agriculture

2.1

1.4

1.2

1.3

0.6

0.7

Mining

0.0

0.0

0.0

0.0

0.0

0.0

Manufacturing

11.1

18.4

18.3

22.1

13.0

13.6

Utilities

1.8

1.5

3.9

4.2

40.5

39.7

Construction

4.4

4.6

8.0

7.6

19.4

19.5

Trade

47.8

27.9

23.5

21.1

15.9

13.4

Transport

7.6

8.8

10.3

11.1

18.8

21.1

Finance

12.0

19.9

23.8

23.0

43.9

41.9

Services

13.2

17.5

11.1

9.5

12.0

11.7

Oil/gas GDP

0.0

0.0

0.0

0.0

0.0

0.0

Non-oil/gas GDP

100.0

100.0

100.0

100.0

14.2

13.7

Total provincial GDP

100.0

100.0

100.0

100.0

11.4

11.6

Source: Calculated from BPS, Provincial Income in Indonesia, various issues.

Although Jakarta does not generate oil and gas value-added, it is widely realized that a great deal is going to (or passing through) Jakarta from the oiland gas-producing provinces. This happens because most of the companies' headquarters are located in DKI Jakarta, controlling all the companies' transactions and operations. It is widely known that most of these companies are owned by foreign enterprises that operate in an international business network.

In period 1975-1983, Jakarta grew much faster than the national growth rate (including or excluding the value-added from oil and gas), as shown in table 11.7. These high growth rates were associated with big increases in the manufacturing, utilities, transport, finance, and services sectors. All these sectors had to grow rapidly to support Jakarta's function as a metropolis of a growing nation. These sectors played a leading part in regional growth. In the following period, 1983-1989, most sectors' growth in DKI Jakarta had dramatically dropped below the national average, except for construction and transport, which were slightly higher (table 11.7). However, the total growth rate was still higher than the national rate if oil and gas are included.

Table 11.7 GDP average annual growth by sector in Jakarta and Indonesia, 1975-1989 (%)


DKI Jakarta

Indonesia

Sector

1975-83

1983-89

1975-83

1983-89

Agriculture

3.8

2.8

5.3

5.5

Mining

-

-

3.3

2.3

Manufacturing

18.0

11.1

12.2

12.3

Utilities

24.0

11.4

20.4

12.9

Construction

11.3

5.8

18.2

5.8

Trade

1.9

4.8

7.7

7.6

Transport

12.2

7.2

12.0

7.1

Finance

22.2

7.4

13.6

7.9

Services

16.8

4.3

10.9

5.3

Oil/gas GDP

-

-

3.2

4.2

Non-oil/gas GDP

11.9

7.1

9.1

7.3

Total GDP

11.9

7.1

7.9

6.7

Source: Calculated from BPS, Provincial Income in Indonesia, various issues.

Comparison of the economic structure of Botabek (Bogor, Tangerang, and Bekasi regencies) with Jakarta will show that generally the picture is similar except for agriculture (table 11.8). Manufacturing and trade held the key role in the economy of the region. Meanwhile agriculture still has an important role, but reveals a relative decline. This is not surprising since most of the investment in West Java Province took place in this region (Hill, 1989). According to BKPM data, around 50 per cent of local and foreign investment in West Java Province is located within Botabek region. This was amplified by Presidential Decree No. 53/1989, which allows private companies to own and manage industrial estates. However, Jakarta had set limitations or prohibited certain industries from locating in Jakarta. This in turn brought the spillover of industries to the Botabek region.

Table 11.8 Distribution, share, and growth of GDP in Botabek, 1985 and 1989 (%)


GDP distribution in Botabek

Share of Botabek's GDP in national economy

Growth

Sector

1985

1989

1985

1989

1985-89

Agriculture

16.1

16.0

2.2

2.4

3.1

Mining

0.5

0.5

0.1

0.1

6.7

Manufacturing

26.8

27.2

5.1

5.0

9.6

Utilities

2.1

2.3

5.9

6.3

15.5

Construction

8.4

8.0

5.6

6.1

7.1

Trade

22.7

26.1

4.1

4.9

11.1

Transport

10.6

9.1

5.3

5.2

9.5

Finance

1.8

1.5

0.9

0.8

7.1

Services

10.9

9.4

3.2

3.4

5.8

Oil/gas GDP

0.0

0.0

00

00


Non-oil/gas GOP

100.0

100.0

3.8

4.1

8.4

Total provincial GDP

100.0

100.0

3.1

3.5

8.4

Sources: Kerja Sama Pembangunan (Development Cooperation) and Bappeda, PDRB Jawa Barat 1985-89.

In order to support industrial activities and to provide basic services in that growing region, it is reasonable that the region should be provided with adequate infrastructure such as electricity, potable water, and waste disposal. This resulted in a high growth rate of utilities between 1985 and 1989 in the Botabek area.

Between 1975 and 1989, Jakarta had a higher GDP per capita than the national level, with or without oil and gas. It was almost twice as much as the national GDP per capita, and in 1989 it was three times the national figure excluding oil/gas (table 11.9). In contrast, the GDP per capita of both the Botabek and Jabotabek regions was lower than the national and DKI Jakarta levels between 1985 and 1989. This again demonstrates the dominance of DKI Jakarta in the Jabotabek region as well as in the country.

Based on the regional accounts data, some changes took place between 1975 and 1983 in the GDP per capita ratio between Jakarta and the country, in which Jakarta showed an increasing tendency from about 2.7 times to more than three times the national level (excluding oil/gas). The Jabotabek region also had ratios during the period 1975-1983 that were nearly twice the national levels.

Table 11.9 GDP per capita in Jakarta, Jabotabek, and Indonesia, 1975-1989

Region

1975

1978

1980

1983

1985

1989

GDP per capita (Rp. '000):

(a) DKI Jakarta

194

330

613

1,119

1,334

2,329

(b) Botabek

n.a.

n.a.

n.a.

n.a.

455

766

(c) Jabotabek

n.a.

n.a.

n.a.

n.a.

937

1,477

(d) Indonesia (excl. oil/gas)a

71

120

210

353

452

777

(e) Indonesia (incl. oil/gas)a

91

151

293

453

564

922

GDP per capita ratio:

(a)/(d)

2.7

2.8

2.9

3.2

3.0

3.0

(a)/(e)

2.1

2.2

2.1

2.5

2.4

2.5

(c)/(d)

n.a.

n.a.

n.a.

n.a.

2.1

1.9

(c)/(e)

n.a.

n.a.

n.a.

n.a.

1.7

1.6

Sources: BPS, Provincial Income in Indonesia, various issues (in current prices); Bappeda & KSP Jawa Barat, PDRB Propinsi Jawa Barat 1985-89; BPS, Population Censuses, 1971,1980, and 1990, interpolated.

a. The all Indonesia total GDP is the sum of the provinces and is not taken from the national income statistics.

Table 11.10 Average annual growth of GDP per capita, 1975-1989 (%)

Region

1975-83

1983-85

1985-89

DKI Jakarta

8.2

1.1

4.2

Botabek

n.a.

n.a.

2.9

Jabotabek

n.a.

n.a.

2.3

Indonesia (excl. oil/gas)a

6.7

4.8

3.6

Indonesia (incl. oil/gas)a

5.5

4.1

3.2

Sources: BPS, Provincial Income in Indonesia, various issues; BPS, Population Censuses, 1971, 1980, and 1990, interpolated.

a. The all Indonesia total GDP is the sum of the provinces and is not taken from the national income statistics.

Until the mid-1970s, the significance of Jakarta in the national economy seemed to have grown rather rapidly, with both population and per capita GDP growing much faster than the national average. In the years between 1975 and 1983, population growth fell, although it was still above the national average, while per capita GDP growth exceeded the national average (table 11.10). During the period 19831985, a sharp drop took place in Jakarta's GDP per capita growth whereas the national growth experienced only a moderate decline. To some extent this might be related to the economic recession experienced by the whole country during the period following the devaluation in 1983. In the period 1985-1989, the recovery of Jakarta's economy put the province back to a higher level in terms of GDP per capita growth compared with the national level.

The Jakarta economy has unique characteristics, which partly explain its economic dominance and to some extent indicate its international role compared with other regions. The first characteristic is Jakarta's role in international and domestic trade in comparison with other parts of the country, because the city was founded as a trading centre. Its role in international trade is illustrated by the fact that in 1989 the value of Jakarta's exports accounted for one-fifth of total national exports (including oil/gas), while if oil and gas are excluded then the share would become one-third - the largest share in the country. These shares have tended to increase since 1986.

On the import side, Jakarta also has a significant role as the main entrance for import goods. The most striking feature in imports is that the total value of Jakarta's imports was more than 50 per cent of the total national value of imports (c.i.f.) in 1989. In addition, the total value of Jakarta's imports has always surpassed the total value of its exports (f.o.b.). Of the export commodities shipped from Jakarta, it has been noted that a large proportion was produced outside Jakarta, particularly oil/petroleum commodities. Only recently has Jakarta produced significant amounts of consumption goods, notably textiles, garments, and paper goods.

Though the above figures explain the city's role in the international trade of the country, according to the 1986 Economic Census the key role of Jakarta was further exhibited by the fact that around one-twelfth of all national wholesale trade enterprises were concentrated in Jakarta, while one-fifth of the national employment in this subsector was also located in Jakarta.

Jakarta's second unique economic characteristic is the magnitude and structure of its domestic and foreign direct investment. In fact Jakarta comprises around 4.6 per cent of the total national population, but it received between one-fifth and one-third of total domestic and foreign investment projects, respectively, in 1967-1991 (tables 11.11 and 11.12).

These shares would become twice as big if the Botabek region were included because a substantial portion of West Java's total investment was located in the region, practically as an extension of the Jakarta economy. The Botabek region accounted for more than half of domestic investment and almost 50 per cent of foreign investment cumulatively from 1967 to the early 1991. Most investment in Botabek is engaged in the manufacturing sector whereas in Jakarta it has shifted towards and is now dominated by the construction and service sectors.

Table 11.11 Cumulative domestic investment, 1968-1anuary 1991 (preliminary figures)

Province

No. of projects

Share of projects (%)

Investment value (Rp. million)

Share of value (%)

Employment

Share of employment (%)






Local

Foreign

Total


DKI Jakarta

1,043

18.6

9,159,929.5

17.4

221,918

2,589

224,507

12.4

West Java

1,457

26.0

15,260,217.4

29.0

372,022

2,374

374,396

20.7

Indonesia

5,599

100.0

52,589,958.8

100.0

1,800,454

9,381

1,809,835

100.0

Source: BKPM, January 1991.
Note: Cumulative figures include the value of new projects, expansion, alterations, mergers, changes of status, as well as revocations.

Table 11.12 Cumulative foreign investment, 1967-January 1991 (preliminary figures)

Province

No. of projects

Share of projects (%)

Investment value (Rp. million)

Share of value (%)

Employment

Share of employment (%)






Local

Foreign

Total


DKI Jakarta

350

32.2

2,903,727.4

17.2

77,402

1,999

79,401

25.2

West Java

318

29.3

4,646,711.4

27.6

84,754

1,370

86,124

27.4

Indonesia

1,087

100.0

16,833,514.9

100.0

309,025

5,631

314,656

100.0

Source: BKPM, January 1991.
Note: Cumulative figures include the value of new projects, expansion, alterations, mergers, changes of status, as well as revocations.

Both domestic and foreign investments are dominated by industry and service projects. More than a quarter of all foreign investment that took place in Jakarta up to 1989 was from Japan. Hong Kong and South Korea are the two other large Asian investors in Jakarta. So far only US investment leads Hong Kong investment in Jakarta. The same pattern of foreign investment can be identified in the Botabek area.

The investment boom in Jakarta as well as in Botabek is in turn followed by the creation of abundant new employment and generates a multiplier effect in other related sectors. A rough estimate shows that more than half of the total new employment created by both types of investment was generated in Jakarta and Botabek. It is thus understandable that Jakarta and the Botabek area have attracted a lot more people (labour) from outside the regions.

The role of the manufacturing sector in Jakarta has been clearly shown in the earlier discussion. Until now, the attraction of Jakarta had remained high, despite some limitations. To some extent, these restrictions in turn have caused new manufacturing investors to move out to the surrounding areas. The expansion of industrial activities from Jakarta to the Botabek region has also been confirmed by the evidence that Jabotabek region has become the major industrial region in the country in terms of industrial output and manufacturing value-added (MVA). In 1989, Jabotabek produced nearly 26 per cent of Indonesia's MVA (including oil/gas) of large and medium manufacturing establishments. The large and medium MVA in DKI Jakarta grew more than the national average (table 11.13) during the period 1975-1985, but it declined in the period 1985-1989.

The decline of MVA growth over the period 1985-1989 is related to the drift of (new) industrial location(s) to the peripheries. The movement of industrial activities from the core area to its peripheries (the Botabek region) has several causes: high urban land prices, difficulties in acquiring urban land, restrictions on industries with high water consumption locating in DKI Jakarta, etc. This tendency has been accelerated by the provision of transportation and road systems, which has made the Jabotabek area an integrated region linked with other regions within the country and with international markets as well.

Table 11.13 Growth and share of large and medium MVA in Indonesia and the Jabotabek area, 1975-1989 (%)


Average annual growth of large& medium MVA

Share of large & medium MVA

Region

1975-83

1983-85

1985-89

1975

1983

1985

1989

DKI Jakarta

16.7

13.4

10.9

11.9

20.2

19.8

19.2

Botabek

n.a.

n.a.

10.2

n.a.

n.a.

7.4

6.6

Jabotabek

n.a.

n.a.

10.7

n.a.

n.a.

27.2

25.8

Indonesia

11.9

13.1

12.8

-

-

-

-

Sources: BPS, Provincial Income in Indonesia, various issues; Bappeda & KSP Jawa Barat, PDRB Propinsi Jawa Barat 1985-89.

The share of large and medium MVA in DKI Jakarta compared with the national MVA seems to have increased steadily from 12 per cent in 1975 to nearly 20 per cent in 1985, but decreased slightly in 1989. The same happened to the Botabek region between 1985 and 1989, as is shown in table 11.13. However, these declines do not mean that the role of Jakarta vis-à-vis the Jabotabek region also declined, since the absolute MVA of both regions still grew rapidly.

Jabotabek's size and rapid growth have helped to provide employment opportunities for surplus rural labour and have expanded the production base for Indonesia's industrial sector.

Environmental conditions

Another area that needs attention is the region's environmental condition. Rapid urban growth and associated industrialization in the Jabotabek area are placing increasing stress on the natural resources of the region, with domestic and industrial waste causing severe degradation of ground, surface, and coastal waters, air pollution, and contamination of soils. This adversely affects its residents' health and quality of life and the economy of the region. Around 40 per cent of the population still depend on groundwater, and the quality of this source is already poor in many areas and is threatened in others. As the region expands, and in the absence of pollution control, safe water must be brought from more distant sources, and the costs of transmission and treatment are high.

Although the coverage of the solid waste collection service in Jakarta is reportedly very high (85 per cent), 15 per cent is randomly dumped and only about 50 per cent of what is collected is disposed of in a controllable manner in suitable landfills. As a consequence of shortcomings in the secondary collection and transportation system, solid waste is disposed of in informal dumps, drains, and canals, causing pollution of waterways (Jakarta's raw water source), pollution of groundwater, and flooding owing to clogging of the primary and secondary drainage systems.

Aquaculture and coastal fishing - important employment and food sources -are threatened, especially by industrial pollution. The incidence of infant mortality and of gastro-enteric, pulmonary, and viral diseases caused, in part, by polluted and congested conditions is high, especially among the poor and those living in the northern, flood-prone areas of the city. In addition to problems relating to health and quality of life, the environmental situation imposes higher infrastructure and maintenance costs.

Transportation

A survey in 1985 revealed that, on an average weekday, 14 million person trips were made to, from, or within DKI Jakarta. Of these, only 608,000 (4.3 per cent) were between Botabek and Jakarta; 91.2 per cent of all trips were within Jakarta itself. Journey-to-work trips from Botabek to Jakarta accounted for only 76,000 trips on a typical weekday. About 64 per cent of trips between Botabek and Jakarta were by public transport: 56 per cent by bus and 7.7 per cent by rail. Overall, however, the rail system carried only 1.7 per cent of all motorized trips, i.e. about 55,000 passengers per day.

In Jakarta, the recent rapid growth in the level of motorization (total registered vehicles grew by an average 12.6 per cent per annum between 1981 and 1985) has outstripped the rate of growth of road capacity. The consequent traffic congestion has been exacerbated by a poorly developed hierarchical road structure and insufficient capacity on the secondary roads serving the main arterial network. For many roads, particularly in the secondary and local network, traffic capacity is reduced by inefficient use of kerb space, poor parking controls, unregulated bus stopping, mixed vehicle types, and undisciplined driver behaviour.

Jabotabek's main road system is dominated by the influence of Jakarta. The national and provincial networks serving Bogor, Tangerang, and Bekasi are primarily oriented towards Jakarta and carry substantial volumes of traffic.

Toll roads have helped to relieve urban traffic congestion in these cities, but internal traffic circulation is still in need of improvement: a poorly developed sub-arterial network, interference from roadside activities, and mixed traffic remain causes of delay and reduced capacity.

Secondary centres in the Botabek kabupatens are relatively well served by roads directly linked with Jakarta or by the national or provincial networks.

The Jabotabek region is also served by a suburban railway network, which comprises: (a) three north-south lines in the central area of Jakarta (the Western, Central, and Eastern lines), (b) a spur line to Tanjung Priok, and (c) radial lines to Tangerang, Merak, Bogor, and Bekasi. Of these, only the Bogor line operates a reasonably frequent commuter service. The rail network's layout is not ideally suited to commuter operations. It functions as a suburban system serving Botabek centres. That is why most commuting trips require transfers to bus/minibus services and often involve significant travel-time penalties over alternative private and public modes of transport (such as express buses).

The main characteristics of and concerns about the existing transport system can be summarized as follow:

(1) Internal travel within Jakarta dominates the pattern of trips; trips between Botabek and Jakarta account for a very small proportion of the total.

(2) Trips are strongly focused on the central area of Jakarta, with consequent problems of congestion on access roads.

(3) Non-motorized trips are still important, particularly for low-income groups and short-distance journeys, but the bus system is the predominant non-private motorized mode. Travel by passenger car is increasing; the rail system caters for only a very small proportion of travel needs.

(4) The public transport system is a severe drain on public funds, with the two state-owned operators, PJKA and PPD, losing more than Rp. 30 billion per year on their operations.

(5) Both Jakarta and the kotamadya/kabupaten capitals of Botabek suffer from urban traffic congestion, the result of poorly structured networks, insufficient control over adjacent development and parking, mixed traffic, and ineffective methods of traffic control.

The transport sector is of special importance to any strategy for the development of Jabotabek. But there are still major variations in the priorities and strategies of the key agencies concerned. There is no single integrated, mutually agreed plan for transportation development in Jabotabek, covering the overall development framework for the region. The core of the problem lies in the institutional division of responsibilities regarding transport development.

Planning and development management

The government spent almost US$1 billion to develop the Jabotabek region in the national development plan Repelita IV. The budget has increased considerably since then. With more limited resources, the government is forced to seek new ways to finance Jabotabek's development. Urban managers in Jabotabek are now being asked to rely on local resources and not to expect huge subsidies from the central government.

Planning responsibilities among the three tiers of government (central, provincial, and local/kabupaten) in Jabotabek are still not clearly defined. The involvement of two different provinces with their (still) different regional perspectives, the role played by national agencies, the diverse range and scope of development programmes, and the limitations of the existing programming and budgeting procedures all hamper the planning and implementation of concerted development efforts.

There is a clear need for improved channels of communication, for more clearly stated development policies, principles, and criteria, and for an overall, coordinating perspective on the region's development planning. A single agency is needed that is capable of (a) providing a forum for the joint preparation of programmes by the national, provincial, and local agencies involved, (b) undertaking independent and objective evaluations of alternative development options, and (c) maintaining and translating an overall development strategy into basic guiding policies, principles, and criteria for sector development.

That agency should be charged with the coordination of all infrastructure development planning in Jabotabek as a whole and empowered to make choices between alternative sectors. One key to improving the coordination and integration of plans and efforts in Jabotabek lies mainly in strengthening institutional arrangements for planning and programming.

Supporting programmes

Jakarta and the Botabek region are the most densely populated areas in Indonesia. Population growth and industrialization have given rise to an escalating demand for space. As a result, environmental problems have emerged. There are clear indications that environmental degradation is increasing, particularly in the rivers and aquifers. Such rapid urban growth has been a big challenge to the Jakarta and West Java administrations because there are limited resources to invest in all necessary infrastructure sectors.

Efforts at managing and coping with the growth and development of the Jabotabek region include the preparation of spatial plans that would be used as a reference in guiding development and investment location in the area. A strategy for the settlement development pattern is a necessary part of the spatial plan.

Another major effort in response to the region's growth is the development of infrastructure, which consists of water supply, urban roads and transportation, solid waste management, drainage and sanitation, flood control, and kampung improvement.

Several other sectors also need to be developed, such as power, telephone, land management, and housing development. Some are included in the existing infrastructure development projects, while others are separately developed. At present, not enough information is available to be included in this chapter. A review of the spatial plan for the region and the infrastructure development projects follow.

Spatial plans

The original Jabotabek regional planning study was undertaken by Cipta Karya in 1974. Subsequently, with the issuance of a Presidential Instruction in 1976, the Jabotabek Planning Team (JPT) was established. The main output of the JPT is the Jabotabek Metropolitan Development Plan (JMDP), which presented an integrated plan for the period until the year 2005. It was revised by Cipta Karya in 1983 (Jabotabek Structure Plan 1985-2005). It is the most comprehensive plan for a metropolitan area ever made in Indonesia. However, it has no official recognition because a Presidential Decree that was intended to provide the legal basis for the plan has never been issued.

The JMDP used the concept of "marketing geography," where the dominant pattern of links between consumers and resources within the region determined a hierarchy of growth centres whose order depended on their economic significance. The most important centres surrounding DKI are Bekasi, Tangerang, and Bogor, followed by Karawang and Serang. Regions outside these centres are expected to grow as agricultural areas to service Jabotabek.

Other proposals of the JMDP include: (i) an east-west development axis to take into account environmental considerations for selecting zones of development priority, and (ii) improved social facilities, environment, and health for low-income groups.

Based on these two plans (the JMDP of 1980 and the Draft Jabotabek Structure Plan of 1983), the DKI Jakarta Structure Plan 2005 (1985-2005) was prepared and was approved through Local Government Regulation in 1984. The objectives of the DKI Plan are as follows:

· to implement population policies to reduce Jakarta's population growth to a total of not more than 12 million in 2005;

· to implement land management policies to accommodate the current growth of population;

· to determine a policy that would limit the use of private cars in the city, especially in the city centre, and improve public transport ser vices; and

· to implement environmental protection and preservation policies, with special emphasis on river water quality control.

The general spatial policies are as follows:

· main urban development is directed towards the east and west;
· development towards the north-west and north-east is to be limited; and
· development is to be strictly controlled in the southern area.

The main policies in the Botabek region include:

· urban development areas in the west and east will be encouraged by improving urban infrastructure;

· there is to be very limited growth in the north-east and north-west, because groundwater and soil structure conditions would impose high development costs.

Complementary to the DKI spatial plan, the West Java Province government has prepared a spatial policy for its Botabek region. Botabek is to be a buffer zone to accommodate any overspill from Jakarta. It is considered an environmentally sensitive area as a result of pollution produced by urban areas and industries.

Other indicated functions of Botabek are intensive agricultural development for Jakarta's consumption. Botabek is also seen as the location for large- and medium-scale industry in small towns in the kabupaten of Bogor, Tangerang, and Bekasi surrounding DKI Jakarta.

The Botabek Plan contains a strategy of concentric growth for commuter zones around Jakarta, in which:

- the inner circle is expected to accommodate 75 per cent of commuters to DKI Jakarta. The settlement centres are directly adjacent to the Jakarta administrative boundary. The distance to the city centre is approximately 15-20 km.

- the outer circle is expected to accommodate 25 per cent of commuters. The settlement centres are a little further away, about 3040 km from the DKI Jakarta city centre (fig. 11.2).

However, recent developments in the Jabotabek region indicate a slightly different pattern from that planned. The population growth of the surrounding towns has exceeded the projected numbers and is growing at a rate faster than expected. A new kabupaten capital has been developed, which is not included in the plan, and this has created a need to change, among other things, the road network. Rapid development is taking place on the fringes of DKI Jakarta, which is expected to be redirected in the plan, specifically to the east-west development axis. All these new physical developments are clearly induced by government policy to deregulate the economy and to promote industrial estates as a necessary step to attract foreign firms.

Infrastructure development

Infrastructure development in Jakarta, as in other urban areas in Indonesia, is implemented through the integrated urban infrastructure development programme (IUIDP) approach. The IUIDP approach tries to integrate the development of some components of urban infrastructure. At the moment these components include: water supply, solid waste management, drainage, sanitation, urban roads and transportation, flood control, and kampung improvement. This infrastructure development programme covers a period of five years and is adapted to the availability of local government resources, including its potential for obtaining loans from the central government and donor countries. Some of the main issues in infrastructure development in Jakarta and Botabek region are as follows.

With regard to water supply, the biggest problem is that the upstream catchment areas are increasingly cleared for development because of land pressures. This increases erosion, flooding, and siltation of downstream waterways. Groundwater is depleting rapidly in the northern part of Jakarta owing to overpumping. As a result, salt water is intruding from the Java Sea into the coastal aquifers. Wells can no longer be used as a water source in this region. In the southern part of the city, wells have to be dug much deeper to produce potable water. The quality of raw water is poor in general. Demand to extend the piped system is growing at a fast rate, as population densities and environmental pollution increase. The service areas do not extend far enough to serve all possible users.


Fig. 11.2 Growth centres and population of Jabotabek in 2005 (Source: Rencana Umum Tata Ruang [General Spatial Plan], Wilayah, Jabotabek, Badan Kerja Sama Pembangunan [Development Cooperation Board], Jabotabek)

With regard to human waste and sanitation, the main problem is that the majority of the population of Jakarta and Botabek use septic tanks and pit latrine facilities. A large proportion of the urban poor dispose of their excrete directly into the canals, drains, and rivers. An integrated flood control and drainage plan for Jabotabek is lacking and the rapid urbanization of the region has resulted in increased flooding downstream, especially in the low-lying areas of north Jakarta.

KIP (Kampung Improvement Programme) is part of a major attempt to improve the welfare of the urban poor by upgrading their living environment and basic infrastructure. The programme has improved the condition of large slum areas, but a new pattern of behaviour has emerged. As housing conditions are improved, the value of the houses rises; low-income families are displaced by higher-income groups and move on to other poorer locations, creating new slums.

The largest investment of the Jabotabek Urban Development Programme II/III1 is in water supply (62 per cent) and KIP (11 per cent). Both are in Jakarta, with the rest of the funds used for other infrastructure components and projects in Jakarta as well as in the Botabek region. Additional components have been added to provide more coverage for Botabek. Water supplies receive high priority because of their high political profile, their role in maintaining public health, their convenience to users, their cost recovery potential, and their capital intensity. In contrast, the other components involve relatively small-scale investments, are labour intensive, and require mostly recurrent expenditure by local government.

From the above discussion, it is clear that the support system for the growth and development of DKI Jakarta and the Jabotabek region is still faced with many problems, but numerous efforts have been planned or are being implemented. The inadequacy of infrastructure, shelter, services, etc., needs to be continuously addressed. The government is aware of this and is doing its best.